12 banks fail to achieve PMEGP target

The performance of twelve banks under the Prime Minister’s Employment Generation Programme (PMEGP) was below the state average of 83.06 percent during 2008-09.

These banks are Indian Overseas Bank (77.26 percent), Syndicate Bank (68.28 percent), Rushikulya Gramya Bank (58.34 percent), Union Bank of India ( 57.85 percent), Baitarani Gramya Bank ( 51.34 percent), Indian Bank (51.19 percent), Canara Bank (35.12 percent), Dena bank (33.65 percent), Utkal Gramya Bank ( 29.84 percent), Corporation Bank (8.6 percent) and State Bank of Hyderabad (7.93 percent).

On the other hand, the performance of ten banks was above the state average during this period. These banks are Allahabad Bank (134.67 percent), Bank of Baroda (118.1 percent), Punjab National Bank ( 115.5 percent), State Bank of India (117.73 percent), Central bank of India (111.3 percent), Nilachal Gramya Bank ( 98.88 percent), Bank of India ( 90.38 percent), Uco Bank (85.61 percent), Andhra Bank (85.6 percent) and United Bank of India (85.5 percent). However, the performance of the banks under the scheme hasn’t been satisfactory this fiscal with the overall disbursement to sanction ratio being only 50.8 percent till 16 March 2010.

This was stated by the director of industries, Hemant Sarma in the state level workshop on PMEGP. While the disbursement of loans sanctioned to the beneficiaries of the scheme was nil for five banks, the performance of four banks was poor. The banks, which are yet to start disbursement, are Corporation Bank, Dena Bank, State Bank of Hyderabad, State Bank of Bikaner and Jaipur and State Bank of Travancore (SBT). Besides, the achievement of Union Bank of India, United Bank of India, Andhra Bank, Indian Bank is not satisfactory. Sarma said, SBI had the highest number of 105 no sanctioning and 148 no disbursing branches in the state. While Uco bank had 42 zero sanctioning and 31 zero disbursing branches, Union Bank had 22 zero sanctioning and 12 zero disbursing branches. The same for the United Bank of India is 23 and 22 respectively.

In this backdrop, the banks were advised to gear up the disbursement to meet the target set for this fiscal before 29 March 2010. Industry secretary, Saurabh Garg said, though a target of Rs 30 crore was given to banks for margin money under PMEGP, Khadi and Village Industries Commission (KVIC) is willing to provide more funds to the state.

Since KVIC is still left with Rs 150 crore to be provided as margin money, the banks can avail more of funds from this kitty. In this backdrop, the government may allot the service area of the banks not participating in the government programmes to other banks, he warned. S M Sinha, general manager of Uco Bank, C H Narasimha Rao, CGM, State Bank of India were present on the occasion.